Padam Cotton Yarns Limited has replaced its statutory auditor after M/s. SVJK & Associates resigned over a disagreement regarding audit fees for the financial year ending March 31, 2027. The company’s Board of Directors accepted the resignation effective July 27, 2026, and simultaneously appointed M/s. Piyush Kothari & Associates to fill the casual vacancy for the fiscal year 2026-27 (FY26-27). This change impacts the oversight of the company’s financial reporting for the upcoming year, with the new appointment requiring ratification by shareholders at the ensuing general meeting.

The Board meeting took place on July 27, 2026, at the corporate office in Ahmedabad, Gujarat. The decision was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board also noted the recommendations of the Audit Committee regarding the new appointment. The filing references SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and SEBI Master Circular No. Ho/49/14/14(7)2025-CFD-POD2/I/3762/2026, last updated on January 30, 2026.

Reasons for Resignation

M/s. SVJK & Associates, Chartered Accountants (FRN: 135182W), cited that the existing audit fees were not commensurate with the time, effort, and professional resources required. In their resignation letter dated July 27, 2026, the firm stated that discussions regarding fees for the financial year ending March 31, 2027, did not reach a mutually acceptable conclusion. They highlighted the company’s growing scale of operations, increasing business complexity, and evolving regulatory environment as factors necessitating higher resources. The firm confirmed there were no other material reasons for the resignation.

SVJK & Associates had completed the statutory audit for the financial year ended March 31, 2026, issuing their report on May 30, 2026. The firm was originally appointed on June 30, 2025, with a term scheduled to expire on September 30, 2026.

New Auditor Appointment

The Board approved the appointment of M/s. Piyush Kothari & Associates, Chartered Accountants (FRN: 140711W), as the new statutory auditor. This appointment is subject to shareholder approval at the ensuing annual general meeting. The firm will hold office until the conclusion of that meeting.

Piyush Kothari & Associates is a peer-reviewed partnership firm established in 2015 by CA. Piyush Kothari. The firm operates from an office in Ahmedabad and provides services in accounts, taxation, finance, audits, and company law. It maintains associations with experts in various fields including merchant banking and legal advisory.

Padam Cotton Yarns Limited has commenced the remote e-voting process for its postal ballot, seeking shareholder approval to increase the borrowing power of the Board up to ₹100 crore. The e-voting period opened on July 03, 2026, and will close on August 01, 2026. The notice was published in the Financial Express and Jansatta newspapers on Friday, July 03, 2026, in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations.

The Board of Directors, in its meeting held on May 30, 2026, approved the appointment of Mr. Ashish Goyal, Proprietor of M/s A. Goyal & Associates, as the Scrutinizer. The cut-off date for determining shareholder eligibility is June 05, 2026. The company completed the dispatch of the postal ballot notice on June 30, 2026.

Alteration of Object Clause and Office Shift

The company proposes to alter its main object clause to facilitate entry into agricultural trading and the entertainment sector. It also seeks to shift its registered office from Haryana to Gujarat to achieve operational and administrative convenience, subject to the approval of the Regional Director.

Financial Resolutions

To support financial requirements, the company seeks consent to create mortgages or charges on its movable and immovable properties to secure borrowings up to ₹100 crore. The Board also seeks approval to borrow monies up to an aggregate amount of ₹100 crore through loans, bonds, or debentures, in addition to temporary loans obtained in the ordinary course of business.

Key Postal Ballot Details